When did Landstar agents begin brokering out freight?
 

Gman, Mike, anyone else who thinks you can become a millionaire in 5 years at Landstar.... 8)

I first heard it maybe in January. I was in Phoenix looking for a load. I got a call about a load, 'Oh boy', and I called back right away. 'I just brokered it out' is what I heard, the first time I knew anything about that. The load boards are lean, lean, lean. Chicken feed in California, the NW and my next destination, Denver. It wasn't like this just last year.

I'm told agents actually make more when they broker out a load than when they give it to a BCO- that's been confirmed more than once. So, my question is this, when did it start? I haven't found a good load going back to the house in over two months! Is this because new Landstar policies have made our selections fewer or has this been going on all along, even back in the days when you could become rich if you could 'think outside the box' :P

BTW, the load I'm taking out of Salem OR, $1.21 all in to the truck in a $3/gal fuel climate. 40k ish on the weight, hazmat, destination Denver! I booked this load 5 days in advance as soon as I got the call. I equivocated at first, but it was better than anthing else I was seeing and I didn't want to get stuck up there.

Now that I think about it, I was talking to a guy at the Flying J a few years ago who left Landstar, got his own authority and was still pulling Landstar freight. So, I guess the brokering out has been going on for years. Now, I did hear somebody say that Landstar began 'pushing' the agents to broker out loads last spring.

Right now, the load offerings are terrible compared to last year. It's either due to the economy or it's due to policy changes at Landstar they don't tell us O/Os about, or both. It's like the fsc, apparently they purposely try to keep their guidelines from the O/Os. I just want to know what if anything is due to head office decisions so that I can make decisions of my own. :?

Re: When did Landstar agents begin brokering out freight?
 

Na, it will take at least 6 years. :wink:


I think they were brokering out freight when I was leased to them and that has been several years ago. I have heard stories about the splits and gotten different stories. Some say their brokered freight pays the broker carrier more (80%) while the BCO would get 73%. I think it depends on how much they need to move the load. I can tell you that I am making more per mile running my own authority and dealing with Landstar. Since there has been such a long gap between the time I leased to Landstar and now, I am not sure that it would be a fair comparison. I will tell you that the cheapest load I have taken from them running my authority, at least in the last year, has been $1.85. That was coming out of Florida. That was a very good rate coming out of that area. It was an unusual situation that I could get that rate. I believe everything else I have accepted from them has paid me at least $2/mile. There was one other load, but I don't recall what it paid. It may have paid less. It isn't that I have not been offered much cheaper rates, but I won't take them.

I have been told that Landstar is pushing for more broker carriers to haul their freight. As a broker carrier I can get most of the same benefits as leasing on with them, if I want to take advantage of them. I won't go into all of the details right now, but will if you want to know. The primary advantage I have as a broker carrier over a BCO is that I can go elsewhere to find my loads. As a BCO, you can find your own loads but must run them through an agent. I did that a couple of times when I was leased to them.

I think you have the impression that I think Landstar is the greatest carrier with whom to lease. That isn't necessarily the case. Sometimes a BCO or owner operator is treated like an employee. If you own your equipment and lease to them, you are an independent businessman. One of the negatives about them is their bureaucracy. They have gotten so large that they have become pretty rigid in the way that they deal with their owner operators. I don't care for that part of their business climate. I also think some of their agents skim money off the top before running it through Landstar. Many of their agents have their own brokerage businesses aside from Landstar. In fact, some were in their own brokerage before contracting with Landstar.

This business is about negotiating. When you run on percentage, you have a greater opportunity to negotiate better rates and terms. It is up to the owner operator to decide whether he will run for a rate offered him. With a carrier like Landstar, it is up to you to decide whether to take a load or not. I know of several BCO's who have been leased to Landstar for a number of years. Evidently they are happy with their choice. I have known of some who previously ran their own authority who have gone to Landstar and similar carriers. The main reason is the paperwork.

As a broker carrier, I would like to run more Landstar loads if the price were right. One thing about Landstar is that I don't have to worry about my money being there for me.

If I were to give up my authority I would consider Landstar along with a couple of other carriers. I almost went back with them several years ago. In my situation, I am glad that I didn't. I doubt whether I will give up my authority to lease on to a carrier. It really isn't that much of a hassle dealing with the extra paperwork. Most of it has to be done even if you lease to a carrier anyway. It does cost a bit more for my insurance, but I pay quite a bit less for my base plates and permits by going through my home state. I don't think every driver is cut out to be an owner operator. Nor do I think every owner operator should run their own authority. Some people are just better at the paperwork side of this business than others. Some simply don't want to deal with it. They would prefer to driver and let someone else deal with the paperwork and red tape. It takes all kinds to make this business work. In an ideal situation, I would like to see everyone running their own authority, but that isn't going to happen, nor should it.

Cam, you have a couple of things going on right now. First and foremost, the economy has been in a slump for almost a year now. Things haven't come to an abrupt halt, but several industries have slowed, including construction and automotive. Both are critical for the growth of rates and trucking in general. One thing I dislike about Landstar is the way they allow their own agents to compete with one another. When I was leased to them I found 3 agents with the same load, all with different rates. All that does is drive rates down. There is a Landstar agent who now has an account hauling tractors out of Gainesville, GA. She really slashed the rates to get the account and is now having difficulty covering the loads. I saw rates about $0.40-50/mile higher before she got the account. I won't haul for them at the rates they offer. CRST Malone used to get a much better rate from them than Landstar is now getting. I will NEVER haul her freight just on principle. You don't have to give away the farm to get the business. I get and keep business by providing better service, as do others. I won't get into a price war to get or keep an account. Unless an account if profitable, I won't get involved with them. I have had brokers to tell me that they can get something hauled for less than I will haul it. I tell them, fine. Let someone else haul it. I won't haul below a minimum amount. If a shipper or broker can't or won't at least meet my minimum then I will either sit or deadhead out of that area.

You're a good sport, Gman! Even as I wrote that I was thinking, 'Man, as much as he helps you, you don't have to be that nasty with him!' :twisted: :lol: :lol: Hey, I've got to work, can you believe that!?! :x I'll be back.

That is all right, Cam. If you are having difficulty finding better paying loads, let me know. I will be glad to share a few names with you. Some had good rates when I was leased to them. Just tell me where you want to run.

Cam,

Go here (page 2) for one of my Landstar rate dialogues.
http://www.classadrivers.com/phpBB2/...r=asc&start=15

I just got a call from Landstar and hauling a load 2800 miles for $1.50 per mile.

Actually it's $1.62 per mile but I have to deadhead 200 miles to get it.

How about this one?

It's a full truckload, $.87 x .65= .55/mile. What do you think, should I take it? I wonder why it doesn't tell the weight... :?

Yeah, see, it's your damn fault I'm starving to death!!! 8)

They pay for your fuel though right?

Doesn't matter. They just called back and asked if I had a headboard. The load is 54' long and can't hang over the back the whole way. So much for that load.

That's it, that's all in, every bit of that .55/mile goes to the BCO!

Of course you know I don't believe that guys who use Landstar brokerage are doing anything wrong. It's an HQ decision. I'm just wondering if they are brokering out more now and if that has contributed to what appears to be a bigtime slow down since last year.

Rank and Gman, I still want to follow up. It's just this 'work' thing, messes up my internet time. :x

Ya, just all of a sudden they are calling me and emailing me about loads. I setup with them last year and never heard a word from them until the other day.

What is BCO?

"Buisness Capacity Owner"

Fancy wording for O/O,Slave,Another #

I hate it when work interfers with my internet time. :lol:

Cam, these carriers are going to do what is in their best interest or makes them the most money. There has been a general slowdown in this business since last year. It isn't just Landstar. However, it could also have something to do with where you are running. There are areas of this country where freight is typically dead or slow. Unfortunately, I think it will continue to be somewhat slow this year. Not like it has been, but slower than usual. You just need to work a little smarter to make a good living. I have seen rates come up. I also see more availability of freight. Don't get discouraged. Things always get better.

Man it's hot in Cali today. But, I got loaded a day early and now I can take my desperately needed beauty rest, wash my nasty body and maybe click off 100 miles or two. Right now, I'm listening to George Tenet's new book.

Rank, yeah I remember that thread. I re-read a lot of it though, there is useful info in there.

Steve, at Landstar we are not mere O/Os :lol:

G-money, I'm cooling out on the brokered freight thing right now. I keep my ear to the ground and my eyes wide open but it sounds as though it could all be due to the general freight slowdown. I also post to a fledgling Landstar board and one of the experienced guys over there thinks the situation at Landstar is just a reflection of the overall situation in the country right now. Still, the volume at least on the boards seems nothng like it was at this time last year.

One thing, I called an agent and she said they never post their loads on the board :shock: I knew that happens at times but I've never heard an agent say they post nothing and I've also heard the erroneous argument that they are required to post everything. I guess the moral of the story is not to worry about pestering agents by cold calling them and saying,'Hi, name is Schmuckatelli, got any high-paying freight going to a good freight area that you can't get rid of?' (or some variation thereof.) :lol:

There are some agents who have certain BCO's running for them. They will offer their best loads to them first. If they cannot cover them they will either post them on the Landstar board or some of the other loads boards. It is much easier for them to book a load if they do it with a BCO or approved broker carrier. As you found out, some of the best paying loads will never see any load board. Once you find an agent or two who has freight in your primary travel lanes and good rates, you need to continue to build that relationship. It is easier for an agent to call a couple of dependable BCO's or broker carriers whom they know. There is nothing wrong with calling agents to see if they have something you can haul. You should have received a book of agents with a place where you can make notes about them such as where the pull freight, type, etc., There is a system in place with Landstar. But you need to work the system.

I've pulled a grand total of 11 loads for Landstar. The 10 that paid well required double drop trailers. The one that paid crap was a step deck load of farm equipment that I will never do again for that rate.

I only use them when they are desparate enough to pay ....which isn't very often.

Rank, I have no idea how many Landstar loads I have pulled. I have turned down many more than I have taken. There are some who typically have cheap freight. There are a few who nearly always seem to have higher paying loads. One of their agents whom I have hauled seems to have dropped their rates, at least with one shipper. It may be because another carrier has gone in and undercut their prices. I believe Maverick is the culprit, in this situation. I suppose there are no real salesmen any more. I would NEVER lease to a carrier who's only selling point is a cheap rate. If it was Maverick, they will only have the account until someone else comes in with a cheaper rate. I have never seen the point in hauling freight for cost or less just to get or keep the business. I had an account that I no long haul for because of rates. Their freight is usually time sensitive and warrants a premium price. The last load I hauled for them paid me $3.45/mile including fsc. The load went from Georgia to California. Another carrier went in to this account and took the business for $1.45/mile. How smart is that? I won't get into a pricing war with anyone. I would rather lose the business than lose money hauling freight. I won't go to California for $1.45/mile, especially today. I don't even haul freight that cheap in the South where fuel is usually cheaper.

Landstar does have agents who know how to sell. Those are the ones who have the decent paying freight. I don't waste my time with those who always have cheap rates. I just spoke to a friend of mine who has been leased to Landstar for several years. He seems to stay busy and is getting decent paying rates. He runs the West coast quite a bit.

If I'm reading this right its an Ammunition and Explosives load to boot. They want a team driven hazmat load for $.55 cpm?!?! What are they smoking?

Heck at my barn company drivers pulling triples earn more than that.

Nah you're reading it wrong the N after PreLoaded and A&E means NO

Lowrange is that you disguised as cam?
 

I never knew it was you buddy!I havn't been here much and I finally decided to leave my local stuff for a while.I booked a load out of Mcdonough, ga to leesburg, va paying $2.12 gross/1250 gross at 610miles.It picked up on 5/8 and delivers 5/10.Heck I got to leesburg VA this morning and forced them to take it.I found my 2nd load 3hrs ago which goes out to sterling heights, MI, from staunton, VA.I will have to deadhead 108 miles to staunton.I was refused the load when she told me I had a stop in Ohio.I then mentioned that it was never mentioned on the board.She finally decided put $80 on my fuel card for my deadhead.IT WOULD BE NICE TO PUT EVERY DAMN INFO ON THE BOARD WITHOUT SURPRISES.the gross on this load is $995/1.75cpm gross plus the $80.
I know MI is good for freight coming to the south or GA and this should bring me home early next week.I don't know how some of you bcos run to be going out to places like utah etc...Since my bad experience in FL and deadheading, I don't plan on going back there and FL will be replaced with NJ on my base plate.I wouldn't even go to FL for $2.00cpm gross as you usually see on the board.I know how it feels CAM because sometimes I fee like getting back into IT, and wear my all black interview suite and go hunting for a desk job.BTW , I wouldn't take that .87cpm gross load.

Re: Lowrange is that you disguised as cam?
 

Yeah, when this board first started a number of years ago I couldn't think of anything clever so I just used my initials. :idea: I took a load to French Camp, CA and I kept getting calls about loads to SLC. I was a little concerned about finding a load out of Cali but I sure dodged a bullet not taking those SLC loads. Two guys on the Landstar board report recently deadheading about a thousand miles each to get out of there. :cry: :cry: :x :cry: I've managed to find freight back to Denver but I found out the agents over there don't post their loads, you have to call. I still don't know what they have. Glad you gave us an update, Henboy. Never knew you were IT.

Different things, flats v. vans, cents per mile v. percentage, current freight slump v. better times, lease on v. own authority...doing what I can, paying down the bills, exploring different possibilities for lifting the profit margins.

.55cpm? :shock: That doesn't even cover fuel alone.

Cam, I think the reason you are having problems is that you are going to bad freight areas. Freight is usually cheap coming out of California. You can get a decent rate if you pull LTL's out. If you change your running area, you can probably do much better on the rates. If you stick to running in the Midwest, Southeast and Northeast, you can get much better rates than running on the West coast. That rate you quoted was from an agent who probably double or triple brokered the load. Unfortunately, there are some lazy agents who only broker freight that they can get from another broker rather than finding their own shippers.

I am out here in sterling ,Mich
 

I dropped my Waynesville ,OH load and I am now at the ford motor plant in sterling heights, Mich.I am definitely guaranteed a load out of here monday and back to GA.This plant is soo big an I am still waiting to start hearing the forKift in the trailer.I feel you on this Cam and like Gman said stop going to those dead places.I also realised that VA has mostly freight going up north like PA,NYsyracuse and even On and nothing coming to the south.I am just learning the whole Landstar system.I now feel like deadheading to IN to lay at the orientation center but nah, I will chill at a TA until monday.

I am out here in sterling ,Mich
 

I dropped my Waynesville ,OH load and I am now at the ford motor plant in sterling heights, Mich.I am definitely guaranteed a load out of here monday and back to GA.This plant is soo big an I am still waiting to start hearing the forKift in the trailer.I feel you on this Cam and like Gman said stop going to those dead places.I also realised that VA has mostly freight going up north like PA,NYsyracuse and even On and nothing coming to the south.I am just learning the whole Landstar system.I now feel like deadheading to IN to lay at the orientation center but nah, I will chill at a TA until monday.

Re: I am out here in sterling ,Mich
 

Yeah, but let me guess, waiting at a truckstop all weekend long wasn't your first choice. :)

Gman, I've been doing this a year now. I was trying the 500 mile radius of Indianapolis for awhile there. Cali was much better last year than it is now. You know, just maybe it's the work environment and not the BCO? What, I've tried different tactics. What, I've stayed out following the best freight I could find because I really don't have to get back to the house. Texas wasn't so good a month or two ago, I went there a lot last year. Maybe it's not me.

DD60, they'll post anything. I guess they thought maybe there would be an O/O in the vicinity of Greeley CO on that day and he'd be from Coppell, TX and he'd get a call and his wife would be going into labor a month early and he'd look at the loadboard and see that load and think, 'Fuel money! Gotta get to the house! Let's go!' Well........, can you think of a reason they'd bother to post that crap? :lol:

Oh yeah, forgot to ask, how's it going overall, Henboy? Don't want to discourage you, but take a look at the Chemical tanker thread. Mike3fan says he's making good money and he just started growing another eyeball in the back of his head! Cool, huh? He can stare at girls and they don't even know it!!! :lol: I'm going to read his blog this weekend.

Lol....I will tell you guys this,for as long as I live I will never miss that Landstar load board,just reading your adventures with it gives me the chills,I hated getting a good load out of MI going to GA,then crap going to NJ then crap again to MO then deadheading to IL to get something going close to MI.........endless vicious cycle.

Too bad my former agent isn't an agent for them anymore or I could defintely hook you guys up with some good paying freight,but then you would swear my name after running you're asses off........

LANDSTAR IS NOT WHT IT USED TOBE
 

People are always saying freight is slow all over but trust me it is worst with Landstar.You are right CAM,sitting here at this Pilot over the weekend wasn't my choice.They also need much more freight being run on weekends.
I read most of Mike3's blog back in feb/march.It is scary to spend $7000 on a pump.He was having doubts with that company in his first 3 weeks of missing checks but I guess he is making it.I guess it depends on the system because a driver told me a pump costs around $1500, but then again he was a company driver.

Re: LANDSTAR IS NOT WHT IT USED TOBE
 

You can find used stuff at most terminals,something I didn't know at the time,I just saw a pump,compressor and 2 pto's and shafts for sale at the Crestwood,IL terminal for $1,500

Re: I am out here in sterling ,Mich
 

There is no question that freight has been way off the past several years. You are right about California being much better last year. However, it is always a challenge to get something that pay well out. Texas has been off for almost a year now. Houston was pretty good last year. It was up and down at one point. I used to pick up some loads from a Landstar agent in Houston. There used to be an agent in or around Seymour. He has some really decent paying freight. He was looking for some vans to haul for him. There are a handful of agents who mostly do tire loads. If you get hooked up with them, you could do pretty well. If you are interested let me know. I can give you a couple of agents.

Re: I am out here in sterling ,Mich
 

Well PM then, I don't want Henboy stealing my leads. :lol: Seriously, I've been trying to find somebody to work with but in todays climate BCOs seem a dime a dozen on the good stuff.

I got a couple calls today about some el cheapo freight out of Denver. The first agent gave me a kind of snide 'good luck' when I said the money wouldnt get it. The second agent, I asked her flatly if the rate per mile included fuel, and she tried to tap dance. Instead of answering the question, she told me what the linehaul was and what the fuel was but sitting there driving my truck it's not like I could get out a map and calculator and figure it out, and she just wouldn't tell me. There are plenty who are trying to make money on the cheap stuff (of course they have no expenses in the trip) but how to become a favored BCO with somebody who has hard to get freight has eluded me.

If you know somebody....tell them I was late only once in 15 months and that was because of a snowstorm and I called well in advance...or whatever, maybe they don't care...I've been looking for a golden goose for awhile now. :?

I sent you a pm, Cam. I have worked with most of those I listed at some point. Most had decent rates at the time. There are 2 or 3 others whom I didn't find in Landstar's current agent roster. I am not sure they are still with them.

Yeah, of course I've pulled for most of those agents already. There might be some way to use that list. Really though, I'm not too interested in becoming a super salesman and trying to schmooze my way into something, even if that is possible. One of the reasons I drive a truck is because I just want to do the work and have my head clear to think about God, about my books on CD, about anything and everything besides making money 24/7. It's like people who are seriously into the markets. I don't know, can you do that successfully without it becoming an obsession? Maybe you can. But really, I'm happy to keep things simple and make incremental steps towards wealth.

On this board I've been talking about money a lot because it's been the big fight to get the good rates. I'd rather just be running for good rates and talking about other stuff.

This thread is making me nervous. I am very close to taking the plunge and getting a truck and signing on to Crst Malone. GMAN, you still feel they are a good outfit to sign on with?

You should be nervous. When Bush leaves the whitehouse, there will be spending cuts, layoffs and probably a recession.

:shock: :shock:
Ummmmm.....We already have been having that..since Bush stepped into that there "House".


:twisted: :twisted: :wink:

And maybe once he's gone we can take some of those billions and billions we are wasting in Iraq and first give some to those folks down there in New Orleans then maybe get back to working on the problems of our own country